Builders deliver upbeat City message

Dec. 1, 2009
Housebuilders have delivered a series of positive statements to the City as signs of an improving market continue. Barratt announced that it is in a “strong position” to buy land and open new sites after its rights issue completed in November and said it expected its net debt to stand at around £700 million as of December 31 2009, down from £1.3 billion last December. The company’s net private reservation rates have risen 34% since this time last year. Persimmon said its improved rate of sales continued into the autumn with the firm expecting to complete 9,000 homes for the year. It has £500 million of sales on its books for 2010, which is a 50% rise on the same point last year. The firm also said that it had driven down its debt from £960 million on October 31 2008, to £399 million a year later. Taylor Wimpey meanwhile said it has opened 22 new outlets in the second half of the year so far and plans to open more as market conditions continue to be “significantly better” than the same period last year. The firm said it did not experience the normal seasonal downturn in the summer and …

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